A transaction showing a decrease in the balance carried in the New York bank might be as follows: A customer comes in and buys New York exchange for $5,000 in the form of a check drawn on the Tenth National Bank. The entries to cover that transaction would be:

Debit: Cash (11)....................



Debit: Due to Depositors (37) (that is, customer's account)


Credit: Due from Tenth National Bank, New York (18) ...........


The general ledger account of the New York bank is really the only bookkeeping record required, provided its space permits showing all debits and credits.